It is *my* opinion that ALL regulators are 'captured', at least to some degree, by complexities that are INTENTIONALLY DESIGNED INTO THE SYSTEM!
The example presented here is of an NFA complaint and charges pertaining to Gain Capital LLC. First the NFA has to accumulate enough reason to perform an audit.. Then they must carry out the audit.. Then, if trading irregularities/execution problems/unfair practices/abuses are found the NFA must communicate those issues to the broker(s).. Brokers merely drag out the audit for months by refusing to adequately cooperate causing further delays as the NFA and a broker banter back and forth over trading issues for months if not years.. During which time retail forex traders are subjected to continuing losses due to the unfair trading practices in question..
In my opinion this is complexity on display and how this complexity HELPS brokers cheat their customers..
I suggest it is these complexities, provided by attorneys, that stack the deck against ALL retail traders..
The focus of this post is on the NFA as a 'captured' regulator. However, these very same complexities apply to nearly ALL regulators throughout of financial system and also throughout our legal system, corporate system, and political system..
It is NOT that we do not have ENOUGH regulation.. It IS that the regulation we do have is far too restricted and complicated by legalities to ever hope to be effective in any way..
This is easy to see when we look at our financial system as a whole.. A financial system that accommodates forms of consumer abuse such as usury without ever even questioning whether or not it might be bad for society as a whole..
Here is an excerpt of the NFA's complaint and charges against Gain Capital..
VIOLATION OF NFA COMPLIANCE RULE 2-36(c): FAILING TO UPHOLD HIGH
STANDARDS OF COMMERCIAL HONOR AND JUST AND EQUITABLE
PRINCIPLES OF TRADE BY ENGAGING IN DECEPTIVE MARGIN AND
VIOLATION OF NFA COMPLIANCE RULES 2-36(bxl) AND (4), 2-36(c) AND
2-36(e): ENGAGING lN MANIPULATIVE ACTS OR PRACTICES REGARDING
PRICES RECEIVED BY CUSTOMERS ON THE METATRADER TRADING
PLATFORM; FAILING TO SUPERVISE THE TRADE INTEGRITY OF THE
METATRADER PLATFORM TO ENSURE THAT ALL CUSTOMER ORDERS
EXPERIENCED SLIPPAGE WHEN PRICES MOVED IN THEIR FAVOR JUST AS
OFTEN AS WHEN PRTCES MOVED AGAINST THEM; AND FAILING TO MAINTAIN
RECORDS FOR ALL UNFILLED ORDERS PLACED PRIOR TO MAY 2OO9 ON THE
''INSTITUTIONAL SERVER" OF THE METATRADER PLATFORM.
VIOLATION OF NFA COMPLIANCE RULE 2-36(e): FAILURE TO ADEQUATELY
REVIEW THE ACTIVITIES OF UNREGISTERED SOLICITORS.
VIOLATION OF NFA COMPLIANCE RULE 2-5: FAILURE TO RESPOND
PROMPTLY AND FULLY TO INQUIRIES AND REQUESTS MADE DURING NFA'S
VIOLATION OF NFA COMPLIANCE RULE 2-36(e): FAILURE TO SUPERVISE THE
You must file a written Answer to the Complaint with NFA within thirty
days of the date of the Complaint. The Answer shall respond to each allegation in the
Complaint by admitting, denying or averring that you lack sufficient knowledge or information to admit or deny the allegation. An averment of insufficient knowledge or information may only be made after a diligent effort has been made to ascertain the relevant facts and shall be deemed to be a denial of the pertinent allegation.
You really SHOULD read this if you trade.. anything! In fact you really SHOULD read this if you do ANY business with ANY corporation! Even the 'rules' designed to PROTECT you have been so corrupted by 'INTENTIONAL COMPLEXITY' that you're RARELY going to get any relief of any type even when fair practices are being blatantly violated..
Click below to read the NFA complaint & charges as they relate to Gain Capital Group LLC
Having reviewed the investigative report submitted by the Compliance
Department of National Futures Association ('NFA"), and having found reason to
believe that NFA Requirements afe being, have been or are about to be violated and
that the matter should be adjudicated, the Business Conduct Committee ("BCC" or
"Committee") issues this Complaint against Gain Capital Group LLC ("Gain") and Glenn
H. Stevens ("Stevens").